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A Modern Approach to Mining in Alaska
In the competitive gold production industry, Contango ORE stands out with its unique hybrid royalty model and strategic joint venture with Kinross. The company’s flagship Manh Choh project in Alaska has achieved production in record time, thanks to its approach of leveraging Kinross’s Fort Knox mill rather than constructing its own. This decision significantly minimized environmental impact and fast-tracked permitting to just 18 months, far shorter than the industry norm.
The Manh Choh project is already yielding results, producing 27,677 ounces of gold net to Contango in Q3 2024 and projecting over 200,000 ounces in average annual production. With cash costs at $1,181 per ounce and gold prices nearing $2,500, the operation generates substantial free cash flow. Additionally, Contango's lean structure—only 12 employees — enhances its efficiency, drawing comparisons to royalty companies known for their high valuations.
Looking ahead, Contango plans to expand its direct shipping ore approach to additional projects, building a robust pipeline without excessive reliance on debt or dilution. The company’s forward-thinking approach positions it as a leader in the modern mining sector.
For more information on Contango Ore, Inc. (NYSE-A: CTGO) please click on the request investor info button.
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